Don't Get Blindsided by Closing Costs
Have you ever decided to buy something, only to find out about additional costs at the end? The last thing you want is to be surprised by unexpected fees - especially at your closing.
You’ve made your financial calculations. Extra charges at the eleventh hour could make all your plans go bust. But you can't just skip the closing - that's when the legal ownership is transferred. Want to avoid being blindsided? Here's how to plan ahead for closing fees:
What are closing costs?
Closing costs typically run about 2% to 5% of the purchase price and are paid to lenders, attorneys and other third parties. Buyers often have more closing costs than Sellers because most fees are related to the new mortgage loan.
Common closing costs for Buyers:
- Loan processing fees
- Home appraisal and inspection fees
- Property taxes
Common closing costs for Sellers:
- Mortgage discharge fees
- Title transfer fees
- Attorney fees for handling the closing
Your REALTOR® can give you a better breakdown of most of your 'overall' costs, not just your closing costs. So, be sure to ask, and be prepared, as some costs all depend on the nature of your property, and whether you're a first-time home Buyer.